Technical Note On Managing Inventories Periodic Review System Case Study Solution & Analysis
Technical Note On Managing Inventories Periodic Review System Case Study Solution (National Association for Stock Automobile Auto Racing) is an organization conducting series of Stock Car racing in United States and functioning as an approving body for driving the rules for Stock Automobile Racing. The company was founded in 1947, by "Huge Expense" France. NASCAR set up Stock Car Racing occasions in United States with the presence of about 130000 audiences typically in 2005. It also broadcast its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with highest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of income for Technical Note On Managing Inventories Periodic Review System Case Study Solution includes; 10% of the total earnings from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist method. The building of Car of Tomorrow by NASCAR, with an intention of security for the motorists, brought various tensions among the stakeholders of the sport.
The communication audit, performed in 2010, exposed that despite the truth that the business extremely rely on the interactions in between its stakeholders, there was no recognizable service communication method. (
The audit explained numerous lacking of NASCAR in terms of lack of internal integration, absence of fan management method and absence of social and digital media of marketing. The company has complex community with independent tracks, drivers and groups. This structure with closed business culture bring numerous difficulties in accelerating a change. Other partners in community includes the media networks i.e. tv and radio, and business marketers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis audiences was highly faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.
The business is currently dealing with the problem of decreasing rates of participation at racing tracks and rates of television audiences. This can put a substantial effect on its incomes from sponsors, media rights, and from other sources of income.
The company was rather effective till 2005 with its standard marketing methods, but soon after 2005 the company begins facing various problems including decrease of its fan base. Numerous external in addition to internal aspects are accountable for the decline. Internal elements include; inadequate financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational commitment. Other obstacles for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, and so on.
In SWOT analysis, strengths specified as business's qualities which are different from its rivals. These are company's core proficiencies on which business performance or business success based upon. Technical Note On Managing Inventories Periodic Review System Case Study Analysis core proficiencies includes it has rights of dictating guidelines as approving body. Guidelines and rules relating to professional stock vehicle racing are dictated by NASCAR like if any group with required abilities and resources can participate in races by following rules and policies determined by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 nations all over the world with more than $56 million earnings. The primary sources of their incomes come from tv rights, approving charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. Due to the fact that of biggest brand commitment of fans toward brands promoted by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).
Weaknesses of NASCAR includes its close culture which is non collaborative. Technical Note On Managing Inventories Periodic Review System Case Study Solution establishes Car of Tomorrow without collaboration so result is that drivers did not like that concept. It was likewise discovered that NASCAR had no effective strategy for organisation interaction.
NASCAR normally used to rely on traditional media sources like regional paper for promotion of its sports. NASCAR likewise came to know from these standard media outlets that sport was hard to cover. When sports fans were asked concerning popular celebrities and stars then NASCAR motorist was not discovered even in top twenty actions.
Economic down turn was experienced in late 2000 which can be danger for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn likewise results in increase fuel rates which likewise affected NASCAR. Now if NASCAR make significant investments in brand-new segments which are based on new customers then it may deal with negative remarks from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is used to analyse market in which business is working. It helps in determining what are strengths and weakness of any particular market. It recommend that every industry is various from one another. It is important to understand market in which business is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to identify profitability, strength and appearance of Technical Note On Managing Inventories Periodic Review System Case Study Help company.
This force indicates capability of rivals. Groups normally represents sponsors in NASCAR and the medium of advertising is drivers. Therefore it can be stated that chauffeurs and race automobiles are competitors. These drivers can break NASCAR if they got better opportunity in regards to prizes and television exposure. If viewers take pleasure in other race cars and trucks and motorists more than NASCAR then viewers can shift to those other intriguing cars and drivers. NASCAR could be having risk from its two direct competitors that is Solution 1 and Moto GP. They need to create competitive benefits for drivers so they do not move to other rivals.
The provider power indicates the variety of providers are available in industry and what is the cost associated with supplier if company shifts from one provider to another. In this industry there is supply monopoly since chauffeurs with needed resources and skills are restricted.
In the case of NASCAR customers are its viewers. Audiences can change to other competitors easily due to the fact that viewers will having low changing expense.
Hazard of Substitution
Replacements are referred as alternatives. The substitutes in this case can be other home entertainment implies like viewers can shift to other sports. So there are vast array of alternatives are offered in this circumstance which recommends that hazard of replacement is high.
Hazard of New Entry
In the case of NASCAR hazard of new entry is low. They require to build automobiles and racing tracks and likewise requires to pay substantial amount to drivers for switching.
It can not be concluded from case study that there would be modification in resource allotments. NASCAR had actually got benefit from lower tax policies which results in increasing in profits. They made heavy investments in the research and development. As NASCAR is working in numerous markets so it requires to deal with various regulations. It is also kept in mind that Technical Note On Managing Inventories Periodic Review System Case Study Solution has dealt with increased analysis regarding regulatory. Every federal government has different concern so NASCAR has to be prepared for it as top priority can be moved to other sector.
Financial elements includes taxation rate, exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate etc. Fortunes of the NASCAR and its competitors can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can utilize abilities of workers to develop new chances and improve existing opportunities.
Every society is various from each other. Each has different social worths and standards. It helps in understanding regarding society and preference of customers. Social aspects includes traditions, culture, mindsets towards particular services and products, demographics, standards, interests and so on. It can be concluded that marketing through other ways instead of standard (i.e. paper) can be preferred in this society.
Technology has impact on practically every company. It consists of innovation in company technique. In this case of Technical Note On Managing Inventories Periodic Review System Case Study Help it can be noted that companies are greatly spending for research and development. NASCAR needs to also deal with its media rights policy with Turner Broadcasting System.
Legal plays a crucial function in every nation since every nation has different legal terms. Technical Note On Managing Inventories Periodic Review System Case Study Solution needs to be ensure that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental elements are also important for every single company. Due to the fact that usually federal governments do not allow those company which can hurt to environment. These environmental elements consists of laws concerning contamination, environment modification, safe waste disposal, policies regarding insurance etc. NASCAR needs to make sure that its vehicles are not creating pollution more than appropriate level.
7 P's of Marketing
The products of Technical Note On Managing Inventories Periodic Review System Case Study Analysis in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Pricing method of NASCAR for its race events tickets is based upon the place and importance of the racing occasions. In addition to race occasions tickets, NASCAR likewise charge different service charge to its stakeholders and earns earnings. For example it charged sanctioning costs of $1-2 million per race typically in 2005.
Marketing method of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to grasp across the country popularity.
Nestle people technique is consisted of offering better experience to its audiences, its fan base and to all of its stakeholders. People are an essential aspect of Technical Note On Managing Inventories Periodic Review System Case Study Analysis A marketing strategy as its occasions are the source of home entertainment for crowd. Its people method includes efforts to offer better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under individuals technique of NASCAR.
A number of service processes are required to conduct racing occasions in an effective method. These processes consist of; correct schedule of time, arrangement for viewers, offering tickets, plan of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. In addition to it, its retailing brands including tee shirts, caps, goodies etc., also function as a physical proof for NASCAR.
Product Life Process Evaluation.
The racing occasions by Technical Note On Managing Inventories Periodic Review System Case Study Analysis was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first phase competition for NASCAR was low, as the rivals drove the vehicles similar to the cars and trucks driven by common individuals.
The very first NASCAR based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with international fan base. He started a brand-new era of profitable sponsorships and television agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the company having large range of income sources. The company has about 500 sponsors with broadcasting its events in about 150 countries. The business has a great deal of tracks in the majority of the cities of United States.
The significant causes of decline consist of the monetary crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.
The marketplace segmentation of Technical Note On Managing Inventories Periodic Review System Case Study Analysis can be divided into 4 sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Technical Note On Managing Inventories Periodic Review System Case Solution is based upon the geographical existence of its tracks in different states and cities in United States, and the television broadcasting of its events in different nations. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division offers the company regional in addition to international fan base.
The group division of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its present fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Nevertheless presently NASCAR is attempting to increase its target audience to the young growing population and kinds too. To increase the demographic segment of its market NASCAR should revise its marketing strategies to draw in more age and lower its prices to go into in the marketplace segment with a low average earnings.( htt1).
The psychological attributes of most of the fans are rather similar. NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to buy tickets and see the races when in a week. 71% of them prefer to purchase products with a NASCAR brand name. They are rather extrovert and want to join other fans while racing. They want quality racing with low cost at hassle-free location. NASCAR has attempted to increase the quality of its racing by introducing phase racing, they likewise have attempted to lower rates and make the event more practical by presenting live racing.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the events. Presently, the fans choice is towards seeing the race at home on tv rather than going, as the customer experience at NASCAR tracks is not favourable as well as expensive.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has great potential for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are likewise one of the possible target market sector for NASCAR, as they are more linked socially than other groups. Car racing video games developed by Technical Note On Managing Inventories Periodic Review System Case Study Solution can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards tailoring and enhancing its digital functions to draw in the kids target market.
This substantial expense makes the segment potential for NASCAR marketing technique of increasing its fan base. The market section thinks about NASCAR as an organization lacking in producing a multiculturalism environment. NASCAR should take numerous steps to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is specified above.
NASCAR is an auto racing business with having USP of high quality auto racing with a worldwide structure. Its sector is sports group and occasions. Its target audience is males in the age group of 15-60 years. Business has closed business culture and having non-interventionist technique.
Collaborations includes suppliers, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million each year from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.
The consumer of Technical Note On Managing Inventories Periodic Review System Case Study Analysis are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty.
The direct competitors of NASCAR are Formula 1 and Moto GP. Teams normally represents sponsors in NASCAR and the medium of advertising is drivers. For that reason it can be said that chauffeurs and race cars and trucks are competitors. If they got much better chance in terms of prizes and television exposure, these chauffeurs can go against NASCAR.
1. Developing and Maintaining Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population sector of USA however regrettably NASCAR had been unable to draw in the this targeted sector. It ought to establish a Facebook page consisting of the info relating to the races and the areas of tracks to make the customer informative about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an essential factor for drawing in viewers towards tracks and towards tv.
3. Developing New Games and improving present games for kids.
In order to draw in these kids, NASCARA needs to enhance its current racing video games by introducing customization in the cars and trucks i.e. changing colours, selection of speed, introducing group racing in the video game, utilizing much better graphics related to the racing tracks and introducing various levels in the video game. All these modifications in the present game would provide better experience to kids.
Together with it, NASCAR needs to also construct new games related to racing like kids racing with kids characters as motorists, cartoon racing with racing between different animation characters with an option of picking the favourite animation character for the kids. These methods would make it possible for the business to attract among its possible target sections.
4. Introducing multiculturalism at occasions.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis events are consisted of fans with extremely few multiculturalism, due to cost of arrival in events, making it unattractive for the clients viewing sport events as get-togethers i.e. Generation Y consumers. As the Generation Y customers are a potential target market for NASCAR, for that reason the company needs to take specific measures to attract this prospective target market. It must adopt techniques to attract the clients far from the tracks place with different culture. The technique to do so could be providing unique discount rates on tickets or free tickets to audiences coming from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more pleased.
5. Improving Client Experience at Tracks.
NASCAR ought to work on infrastructure and amenities at tracks because on the race day audiences got disappointed. Viewers have lots of expectations from Technical Note On Managing Inventories Periodic Review System Case Study Analysis since in exact same market other business are offering better services than NASCAR. IF NASCAR don't work on this issue then its fans might shifted to its rivals.
Marketing Budget plan
Marketing spending plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the cost associated information for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing customer experience at tracks would need greatest preliminary investment and cost and method 4 of introducing multiculturalism will require most affordable preliminary investment with least expensive even more each year expense. The business should prioritize the resource allowance on these methods on the basis of its offered resources and the prospective benefits which the technique would provide.
NOTE: The values about expense are presumed on rational basis due the lack of realities and figures connected to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the external and internal factors of Technical Note On Managing Inventories Periodic Review System Case Study Solution causing the decrease of television viewership rate and attendance rate at tracks, the above marketing techniques are suggested to NASCAR to increase its fan base in long term. These methods would manage internal aspects like poor consumer experience at tracks, insufficient social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, as well as with external aspects like shifting of fans towards other sports, demographical modifications in America and altering domesticity designs.